Cover
Cover - shares | 3 Months Ended | |
Apr. 29, 2023 | May 19, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 29, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38559 | |
Entity Registrant Name | BJ’S WHOLESALE CLUB HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 45-2936287 | |
Entity Address, Address Line One | 350 Campus Drive | |
Entity Address, City or Town | Marlborough | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01752 | |
City Area Code | 774 | |
Local Phone Number | 512-7400 | |
Title of 12(b) Security | Common Stock, par value $0.01 | |
Trading Symbol | BJ | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 134,369,427 | |
Entity Central Index Key | 0001531152 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --02-03 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 29, 2023 | Jan. 28, 2023 | Apr. 30, 2022 |
Current assets: | |||
Cash and cash equivalents | $ 23,387 | $ 33,915 | $ 37,952 |
Accounts receivable, net | 217,866 | 239,746 | 210,405 |
Merchandise inventories | 1,532,006 | 1,378,551 | 1,462,098 |
Prepaid expenses and other current assets | 69,048 | 51,033 | 58,814 |
Total current assets | 1,842,307 | 1,703,245 | 1,769,269 |
Operating lease right-of-use assets, net | 2,124,621 | 2,142,925 | 2,177,777 |
Property and equipment, net | 1,364,815 | 1,337,029 | 989,658 |
Goodwill | 1,008,816 | 1,008,816 | 924,134 |
Intangibles, net | 113,536 | 115,505 | 122,332 |
Deferred income taxes | 6,728 | 11,498 | 4,595 |
Other assets | 33,672 | 30,938 | 22,240 |
Total assets | 6,494,495 | 6,349,956 | 6,010,005 |
Current liabilities: | |||
Short-term debt | 400,000 | 405,000 | 80,000 |
Current portion of operating lease liabilities | 178,939 | 177,233 | 169,423 |
Accounts payable | 1,281,676 | 1,195,697 | 1,267,102 |
Accrued expenses and other current liabilities | 758,724 | 767,411 | 692,530 |
Total current liabilities | 2,619,339 | 2,545,341 | 2,209,055 |
Long-term operating lease liabilities | 2,037,844 | 2,058,797 | 2,107,532 |
Long-term debt | 448,004 | 447,880 | 748,987 |
Deferred income taxes | 66,699 | 57,024 | 58,511 |
Other non-current liabilities | 190,883 | 194,077 | 164,578 |
Commitments and contingencies (see Note 5) | |||
STOCKHOLDERS’ EQUITY | |||
Preferred stock; par value $0.01; 5,000 shares authorized, and no shares issued | 0 | 0 | 0 |
Common stock, par value $0.01; 300,000 shares authorized, 147,380 shares issued and 134,376 outstanding at April 29, 2023; 146,347 shares issued and 133,903 outstanding at January 28, 2023; and 145,941 shares issued and 135,195 outstanding at April 30, 2022 | 1,473 | 1,463 | 1,459 |
Additional paid-in capital | 970,227 | 958,555 | 914,120 |
Retained earnings | 760,567 | 644,490 | 243,763 |
Accumulated other comprehensive income | 1,049 | 1,550 | 2,010 |
Treasury stock, at cost, 13,004 shares at April 29, 2023; 12,444 shares at January 28, 2023; and 10,746 shares at April 30, 2022 | (601,590) | (559,221) | (440,010) |
Total stockholders’ equity | 1,131,726 | 1,046,837 | 721,342 |
Total liabilities and stockholders’ equity | $ 6,494,495 | $ 6,349,956 | $ 6,010,005 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Apr. 29, 2023 | Jan. 28, 2023 | Apr. 30, 2022 |
Statement of Financial Position [Abstract] | |||
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 300,000,000 | 300,000,000 | 300,000,000 |
Common stock, issued (in shares) | 147,380,000 | 146,347,000 | 145,941,000 |
Common stock, outstanding (in shares) | 134,376,000 | 133,903,000 | 135,195,000 |
Treasury stock (in shares) | 13,004,000 | 12,444,000 | 10,746,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
Total revenues | $ 4,723,142 | $ 4,496,435 |
Cost of sales | 3,843,150 | 3,705,838 |
Selling, general and administrative expenses | 689,328 | 635,380 |
Pre-opening expenses | 3,894 | 4,900 |
Operating income | 186,770 | 150,317 |
Interest expense, net | 14,690 | 7,841 |
Income from continuing operations before income taxes | 172,080 | 142,476 |
Provision for income taxes | 56,092 | 30,019 |
Income from continuing operations | 115,988 | 112,457 |
Income (loss) from discontinued operations, net of income taxes | 89 | (7) |
Net income | $ 116,077 | $ 112,450 |
Income per share attributable to common stockholders—basic: | ||
Income from continuing operations (in USD per share) | $ 0.87 | $ 0.84 |
Income from discontinued operations (in USD per share) | 0 | 0 |
Net income (in USD per share) | 0.87 | 0.84 |
Income per share attributable to common stockholders—diluted: | ||
Income from continuing operations (in USD per share) | 0.85 | 0.82 |
Income from discontinued operations (in USD per share) | 0 | 0 |
Net income (in USD per share) | $ 0.85 | $ 0.82 |
Weighted-average number of shares outstanding: | ||
Basic (in shares) | 133,312 | 134,244 |
Diluted (in shares) | 135,902 | 136,702 |
Other comprehensive income (loss): | ||
Amounts reclassified from accumulated other comprehensive income, net of tax | $ (501) | $ 117 |
Unrealized gain on cash flow hedge, net of income tax provision of $229, at April 30, 2022 | 0 | 588 |
Total other comprehensive income (loss) | (501) | 705 |
Total comprehensive income | 115,576 | 113,155 |
Net sales | ||
Total revenues | 4,620,620 | 4,399,810 |
Membership | ||
Total revenues | $ 102,522 | $ 96,625 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations and Comprehensive Income (Parentheticals) $ in Thousands | 3 Months Ended |
Apr. 30, 2022 USD ($) | |
Income Statement [Abstract] | |
Unrealized gain on cash flow hedge, tax provision | $ 229 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock |
Balance at beginning of period (in shares) at Jan. 29, 2022 | 145,451 | |||||
Balance at beginning of period at Jan. 29, 2022 | $ 648,108 | $ 1,454 | $ 902,704 | $ 131,313 | $ 1,305 | $ (388,668) |
Treasury stock at beginning of period (in shares) at Jan. 29, 2022 | (9,945) | |||||
Net income | 112,450 | 112,450 | ||||
Amounts reclassified from accumulated other comprehensive income, net of tax | 117 | 117 | ||||
Unrealized gain on cash flow hedge, net of tax | 588 | 588 | ||||
Common stock issued under stock incentive plans (in shares) | 490 | |||||
Common stock issued under stock incentive plans | 0 | $ 5 | (5) | |||
Stock-based compensation expense | 9,115 | 9,115 | ||||
Net cash received from stock option exercises | 2,306 | 2,306 | ||||
Acquisition of treasury stock (in shares) | (801) | |||||
Acquisition of treasury stock | $ (51,342) | $ (51,342) | ||||
Balance at end of period (in shares) at Apr. 30, 2022 | 135,195 | 145,941 | ||||
Balance at end of period at Apr. 30, 2022 | $ 721,342 | $ 1,459 | 914,120 | 243,763 | 2,010 | $ (440,010) |
Treasury stock at end of period (in shares) at Apr. 30, 2022 | (10,746) | (10,746) | ||||
Balance at beginning of period (in shares) at Jan. 28, 2023 | 133,903 | 146,347 | ||||
Balance at beginning of period at Jan. 28, 2023 | $ 1,046,837 | $ 1,463 | 958,555 | 644,490 | 1,550 | $ (559,221) |
Treasury stock at beginning of period (in shares) at Jan. 28, 2023 | (12,444) | (12,444) | ||||
Net income | $ 116,077 | 116,077 | ||||
Amounts reclassified from accumulated other comprehensive income, net of tax | (501) | (501) | ||||
Unrealized gain on cash flow hedge, net of tax | 0 | |||||
Common stock issued under stock incentive plans (in shares) | 1,033 | |||||
Common stock issued under stock incentive plans | 0 | $ 10 | (10) | |||
Stock-based compensation expense | 10,007 | 10,007 | ||||
Net cash received from stock option exercises | 1,675 | 1,675 | ||||
Acquisition of treasury stock (in shares) | (560) | |||||
Acquisition of treasury stock | $ (42,369) | $ (42,369) | ||||
Balance at end of period (in shares) at Apr. 29, 2023 | 134,376 | 147,380 | ||||
Balance at end of period at Apr. 29, 2023 | $ 1,131,726 | $ 1,473 | $ 970,227 | $ 760,567 | $ 1,049 | $ (601,590) |
Treasury stock at end of period (in shares) at Apr. 29, 2023 | (13,004) | (13,004) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 116,077 | $ 112,450 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 54,190 | 47,109 |
Amortization of debt issuance costs and accretion of original issue discount | 324 | 832 |
Stock-based compensation expense | 10,007 | 9,115 |
Deferred income tax provision | 14,445 | 6,299 |
Changes in operating leases and other non-cash items | (750) | 29,892 |
Increase (decrease) in cash due to changes in: | ||
Accounts receivable | 21,871 | (36,454) |
Merchandise inventories | (153,455) | (219,163) |
Prepaid expenses and other current assets | (18,016) | (3,566) |
Other assets | (2,933) | 587 |
Accounts payable | 85,979 | 154,319 |
Accrued expenses and other current liabilities | (4,977) | (58,780) |
Other non-current liabilities | (3,630) | 1,668 |
Net cash provided by operating activities | 119,132 | 44,308 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Additions to property and equipment, net of disposals | (92,084) | (90,533) |
Net cash used in investing activities | (92,084) | (90,533) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from revolving lines of credit | 149,000 | 115,000 |
Payments on revolving lines of credit | (154,000) | (35,000) |
Net cash received from stock option exercises | 1,675 | 2,306 |
Acquisition of treasury stock | (42,369) | (51,342) |
Proceeds from financing obligations | 9,104 | 8,072 |
Other financing activities | (986) | (295) |
Net cash (used in) provided by financing activities | (37,576) | 38,741 |
Net decrease in cash and cash equivalents | (10,528) | (7,484) |
Cash and cash equivalents at beginning of period | 33,915 | 45,436 |
Cash and cash equivalents at end of period | 23,387 | 37,952 |
Supplemental cash flow information: | ||
Interest paid | 14,540 | 6,993 |
Income taxes paid | 11,875 | 10,925 |
Operating lease liabilities arising from obtaining right-of-use assets | 26,189 | 123,339 |
Non-cash financing and investing activities: | ||
Property additions included in accrued expenses | $ 24,754 | $ 23,974 |
Description of Business
Description of Business | 3 Months Ended |
Apr. 29, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business BJ’s Wholesale Club Holdings, Inc. and its wholly-owned subsidiaries is a leading warehouse club operator concentrated primarily in the eastern half of the United States. As of April 29, 2023, the Company operated 237 warehouse clubs and 167 gas stations in 18 states. The Company follows and reports based on the National Retail Federation’s fiscal calendar. The thirteen week periods ended April 29, 2023 and April 30, 2022 are referred to herein as the "first quarter of fiscal year 2023" and the "first quarter of fiscal year 2022," respectively. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Apr. 29, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying interim financial statements of BJ’s Wholesale Club Holdings, Inc. are unaudited and, in the opinion of management, reflect all normal recurring adjustments considered necessary for a fair statement of the Company’s financial statements in accordance with GAAP. The condensed consolidated balance sheet as of January 28, 2023 is derived from the audited consolidated balance sheet as of that date. The unaudited results of operations for the first quarter of fiscal year 2023 are not necessarily indicative of future results or results to be expected for fiscal year 2023. The Company’s business, in common with the business of retailers generally, is subject to seasonal influences. The Company’s sales and operating income have typically been highest in the fourth quarter holiday season and lowest in the first quarter of each fiscal year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the fiscal year 2022, as filed with the Securities and Exchange Commission on March 16, 2023. Recent Accounting Pronouncements The Company’s accounting policies are set forth in the audited financial statements included in the Company’s Annual Report on Form 10-K for fiscal year 2022. There have been no material changes to these accounting policies and no accounting pronouncements adopted that had a material impact on the Company’s financial statements. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Apr. 29, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Performance Obligations The Company identifies each distinct performance obligation to transfer goods (or bundle of goods) or services. The Company recognizes revenue as it satisfies a performance obligation by transferring control of the goods or services to the customer. Net sales—The Company recognizes net sales at clubs and gas stations when the customer takes possession of the goods and tenders payment. Sales tax is recorded as a liability at the point of sale. Revenue is recorded at the point of sale based on the transaction price on the shelf sign, net of any applicable discounts, sales tax and expected refunds. For e-commerce sales, the Company recognizes sales when control of the merchandise is transferred to the customer, which is typically at the time of shipment. The following table summarizes the Company’s point of sale transactions at clubs and gas stations, excluding sales tax, as a percentage of both net sales and total revenues: Thirteen Weeks Ended April 29, 2023 April 30, 2022 Point of sale transactions, excluding sales tax, as a percent of net sales 91% 92% Point of sale transactions, excluding sales tax, as a percent of total revenues 89% 90% BJ’s Perks Rewards and My BJ’s Perks programs—The Company’s BJ’s Perks Rewards membership program which was in place in fiscal year 2022, allowed participating members to earn 2% cash back, up to a maximum of $500 per year, on qualified purchases made at BJ’s. The Company also offered a co-branded credit card program, the My BJ’s Perks program, which allowed My BJ’s Perks Mastercard credit card holders to earn up to 5% cash back on eligible purchases made at BJ’s and up to 2% cash back on purchases made with the card outside of BJ’s. Cash back was in the form of electronic awards issued in $10 increments that could be used online or in-club at the register and expired six months from the date issued. In the first quarter of fiscal year 2023, the Company rebranded the rewards program. The former BJ's Perks Rewards membership program is now the Club+ program, whereby participating members earn 2% cash back, up to a maximum of $500 per year, on qualified purchases made at BJs and a 5 cent-per-gallon discount at BJ's gas locations. The Company's co-branded credit card program is now the BJ's One and BJ's One+ program, which allows cardholders with the opportunity to earn up to 5% cash back on purchases made in BJ's clubs or online at bjs.com and up to a 15 cent-per-gallon discount on gasoline when paying with a BJ's One or BJ's One+ Mastercard at our BJ’s gas locations. Cash back is in the form of electronic awards issued to each member monthly on their credit card statement date. Earned rewards under these two programs do not expire. Earned awards may be redeemed on future purchases made at the Company. The Company recognizes revenue for earned awards when customers redeem such awards as part of a purchase at one of the Company’s clubs or the Company’s website. The Company accounts for these transactions as multiple element arrangements and allocates the transaction price to separate performance obligations using their relative fair values. The Company includes the fair value of award dollars earned in deferred revenue at the time the award dollars are earned. This liability was $36.6 million at April 29, 2023, $34.7 million at January 28, 2023 and $32.5 million at April 30, 2022 and is included in accrued expenses and other current liabilities in the condensed consolidated balance sheets. In the first quarter of fiscal year 2023, the Company recognized $34.7 million of revenue that was included in the deferred liability as of January 28, 2023. In the first quarter of fiscal year 2022, the Company recognized $30.3 million that was included in the deferred liability as of January 29, 2022. Royalty revenue received in connection with the My BJ’s Perks and the BJ's One and BJ's One+ co-brand credit card program is variable consideration and is considered deferred until the card holder makes a purchase. The Company’s total deferred royalty revenue related to the outstanding My BJ's Perks and BJ's One and BJ's One+ credit card program was $4.1 million, $17.9 million, and $29.2 million at April 29, 2023, January 28, 2023, and April 30, 2022, respectively, and is included in accrued expenses and other current liabilities in the condensed consolidated balance sheets. The timing of revenue recognition of these awards is driven by actual customer activities, such as redemptions and expirations. As of April 29, 2023, the Company expects to recognize $4.1 million of the deferred revenue in fiscal year 2023. In connection with the new co-brand credit card program, the Company has deferred approximately $14.7 million for funds received related to marketing and other integration costs as of April 29, 2023. The Company expects to recognize approximately $6.3 million in fiscal year 2023, which is included in accrued expenses and other current liabilities. The Company expects to recognize approximately $8.4 million thereafter, of which $1.1 million is included in accrued expenses and other current liabilities and $7.3 million is included in other non-current liabilities in the condensed consolidated balance sheets. Membership—The Company charges a membership fee to its customers, which allows customers to shop in the Company’s clubs, shop on the Company’s website, and purchase gasoline at the Company’s gas stations for the duration of the membership, which is generally 12 months. As the Company has the obligation to provide access to its clubs, website, and gas stations for the duration of the membership term, the Company recognizes membership fees on a straight-line basis over the life of the membership. The Company’s deferred revenue related to membership fees was $192.7 million, $183.7 million and $185.2 million at April 29, 2023, January 28, 2023, and April 30, 2022, respectively, and is included in accrued expenses and other current liabilities in the condensed consolidated balance sheets. Gift Card Programs—The Company sells BJ’s gift cards that allow customers to redeem the card for future purchases equal to the amount of the original purchase price of the gift card. Revenue from gift card sales is recognized upon redemption of the gift card because the Company’s performance obligation to redeem the gift card for merchandise is satisfied when the gift card is redeemed. Deferred revenue related to gift cards was $13.1 million, $14.1 million and $11.2 million at April 29, 2023, January 28, 2023, and April 30, 2022, respectively. The Company recognized $11.6 million and $10.5 million of revenue from gift card redemptions in the first quarters of fiscal year 2023 and fiscal year 2022, respectively. Disaggregation of Revenue The Company’s club retail operations, which include retail club and other sales procured from our clubs and distribution centers, represent substantially all of its consolidated total revenues, and are the Company’s only reportable segment. All the Company’s identifiable assets are in the United States. The Company does not have significant sales outside the United States, nor does any customer represent more than 10% of total revenues for any period presented. The following table summarizes the Company’s percentage of net sales disaggregated by category: Thirteen Weeks Ended April 29, 2023 April 30, 2022 Grocery 71 % 67 % General Merchandise and Services 10 % 11 % Gasoline and Other 19 % 22 % |
Debt and Credit Arrangements
Debt and Credit Arrangements | 3 Months Ended |
Apr. 29, 2023 | |
Debt Disclosure [Abstract] | |
Debt and Credit Arrangements | Debt and Credit Arrangements The following table summarizes the Company’s debt (in thousands): April 29, 2023 January 28, 2023 April 30, 2022 ABL Revolving Facility $ 400,000 $ 405,000 $ — ABL Facility — — 130,000 First Lien Term Loan 450,000 450,000 701,920 Unamortized original issue discount and debt issuance costs (1,996) (2,120) (2,933) Less: Short-term debt (400,000) (405,000) (80,000) Long-term debt $ 448,004 $ 447,880 $ 748,987 ABL Revolving Facility On July 28, 2022, the Company entered into the ABL Revolving Facility with an ABL Revolving Commitment of $1.2 billion pursuant to that certain credit agreement (the "Credit Agreement") with Bank of America, N.A., as administrative agent and collateral agent, and the other lenders party thereto. The maturity date of the ABL Revolving Facility is July 28, 2027. In connection with this transaction, the Company extinguished the ABL Facility. Revolving loans under the ABL Revolving Facility are available in an aggregate amount equal to the lesser of the aggregate ABL Revolving Commitment or a borrowing base based on the value of certain inventory, accounts and credit card receivables, subject to specified advance rebates and reserves as set forth in the Credit Agreement. Indebtedness under the ABL Revolving Facility is secured by substantially all of the assets (other than real estate) of the Company and its subsidiaries, subject to customary exceptions. As amended, interest on the ABL Revolving Facility is calculated either at the Secured Overnight Financing Rate ("SOFR") plus a range of 100 to 125 basis points or a base rate plus 0 to 25 basis points, based on excess availability. The Company will also pay an unused commitment fee of 20 basis points per annum on the unused ABL Revolving Commitment. Each borrowing is for a period of one three The ABL Revolving Facility places certain restrictions (i.e., covenants) upon the Borrower’s, and its subsidiaries’, ability to, among other things, incur additional indebtedness, pay dividends and make certain loans, investments, and divestitures. The ABL Revolving Facility contains customary events of default (including payment defaults, cross-defaults to certain of our other indebtedness, breach of representations and covenants and change of control). The occurrence of an event of default under the ABL Revolving Facility would permit the lenders to accelerate the indebtedness and terminate the ABL Revolving Facility. At January 28, 2023, there was $405.0 million outstanding in loans under the ABL Revolving Facility and $11.5 million in outstanding letters of credit. The interest rate on the revolving credit facility was 5.63% and unused capacity was $535.2 million. As of April 29, 2023, there was $400.0 million outstanding in loans under the ABL Revolving Facility and $11.8 million in outstanding letters of credit. The interest rate on the ABL Revolving Facility was 6.08% and unused capacity was $645.0 million. ABL Facility - Former Credit Agreement The ABL Revolving Facility replaced the ABL Facility, which was comprised of a $950.0 million revolving credit facility and a $50.0 million term loan. The ABL Facility was secured on a senior basis by certain "liquid assets" of the Company and secured on a junior basis by certain "fixed assets" of the Company. The $50.0 million term loan payment terms were restricted in that the term loan could not be repaid unless all loans outstanding under the ABL Facility are repaid, and once repaid, cannot be re-borrowed. The availability under the $950.0 million revolving credit facility was restricted based on eligible monthly merchandise inventories and receivables as defined in the facility agreement. Interest on the revolving credit facility was calculated either at the London Interbank Offered Rate ("LIBOR") plus a range of 125 to 175 basis points or a base rate plus a range of 25 to 75 basis points; and interest on the term loan was calculated at LIBOR plus a range of 200 to 250 basis points or a base rate plus a range of 100 to 150 basis points, in all cases based on excess availability. The applicable spread of LIBOR and base rate loans at all levels of excess availability stepped down by 12.5 basis points upon achieving total net leverage of 3.00 to 1.00. The ABL Facility also provided a sub-facility for issuance of letters of credit subject to certain fees defined in the ABL Facility agreement. The ABL Facility was subject to various commitment fees during the term of the facility based on utilization of the revolving credit facility and was scheduled to mature on August 17, 2023. As of April 30, 2022, there was $130.0 million outstanding in loans under the ABL Facility and $10.9 million in outstanding letters of credit. The interest rate on the ABL Facility was 1.89%, the interest rate of the term loan was 2.45%, and unused capacity was $859.1 million. First Lien Term Loan On January 5, 2023, the Company entered into an amendment (the “Third Amendment”) to the First Lien Term Loan Credit Agreement, with Nomura Corporate Funding Americas, LLC, as administrative agent and collateral agent and the lenders party thereto. BofA Securities, Inc., Deutsche Bank Securities Inc., and Wells Fargo Securities LLC acted as joint lead arrangers and joint bookrunners of the Third Amendment. The Third Amendment, among other things, extended the maturity date with respect to the term loans outstanding under the First Lien Term Loan Credit Agreement from February 3, 2024 to February 3, 2027. In addition, the Third Amendment transitioned the interest rate, immediately, from LIBOR to SOFR and changed the applicable margin from LIBOR plus 200 – 225 basis points per annum to SOFR plus 275 basis points per annum. Voluntary prepayments are permitted. Principal payments must be made on the First Lien Term Loan pursuant to an annual excess cash flow calculation when the net leverage ratio exceeds 3.50 to 1.00. As of April 29, 2023, the Company's net leverage ratio did not exceed 3.50 to 1.00, and therefore, no incremental principal payments were required. The First Lien Term Loan is subject to certain affirmative and negative covenants but no financial covenants. It is secured on a senior basis by certain "fixed assets" of the Company and on a junior basis by certain "liquid" assets of the Company. There was $450.0 million outstanding on the First Lien Term Loan at April 29, 2023 and January 28, 2023 and $701.9 million outstanding at April 30, 2022. The interest rates were 7.58%, 7.11%, and 2.52% at April 29, 2023, January 28, 2023, and April 30, 2022, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 29, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesThe Company is involved in various legal proceedings that are typical of a retail business. In accordance with applicable accounting guidance, an accrual will be established for legal proceedings if and when those matters present loss contingencies that are both probable and estimable. The Company does not believe the resolution of any current proceedings will result in a material loss to the condensed consolidated financial statements. |
Stock Incentive Plans
Stock Incentive Plans | 3 Months Ended |
Apr. 29, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Incentive Plans | Stock Incentive Plans On June 13, 2018, the Company’s board of directors adopted, and its stockholders approved, the BJ’s Wholesale Club Holdings, Inc. 2018 Incentive Award Plan (the "2018 Plan"). The 2018 Plan provides for the grant of stock options, restricted stock, dividend equivalents, stock payments, restricted stock units, performance shares, other incentive awards, stock appreciation rights, and cash awards. Prior to the adoption of the 2018 Plan, the Company granted stock-based compensation to employees and non-employee directors under the Fourth Amended and Restated 2011 Stock Option Plan of BJ’s Wholesale Club, Inc. (f/k/a Beacon Holding Inc.), as amended (the "2011 Plan") and the 2012 Director Stock Option Plan of BJ’s Wholesale Club Holdings, Inc. (f/k/a Beacon Holding, Inc.), as amended (the "2012 Director Plan"). No further grants will be made under the 2011 Plan or the 2012 Director Plan. The 2018 Plan authorizes the issuance of 13,148,058 shares, including 985,369 shares that were reserved but not issued under the 2011 Plan and the 2012 Director Plan. If an award under the 2018 Plan, the 2011 Plan, or the 2012 Director Plan is forfeited, expires, or is settled for cash, any shares subject to such award may, to the extent of such forfeiture, expiration, or cash settlement, be used again for new grants under the 2018 Plan. Additionally, shares tendered or withheld to satisfy grant or exercise price, or tax withholding obligations associated with an award under the 2018 Plan, the 2011 Plan, or the 2012 Director Plan will be added to the shares authorized for grant under the 2018 Plan. The following shares may not be used again for grant under the 2018 Plan: (1) shares subject to a stock appreciation right ("SAR") that are not issued in connection with the stock settlement of the SAR upon its exercise and (2) shares purchased on the open market with the cash proceeds from the exercise of options under the 2018 Plan, 2011 Plan, or 2012 Director Plan. As of April 29, 2023, there were 4,859,186 shares available for future issuance under the 2018 Plan. On April 16, 2021, the Compensation Committee approved a modification to the equity awards agreements under the 2011 Plan, 2012 Director Plan and 2018 Plan. In the event that an employee is terminated due to death or disability, the modified equity award agreements provide for: (i) full vesting of all time-based awards, including restricted stock awards and stock options, (ii) pro-rata vesting of all performance-based awards, including performance share units, based on actual performance as of the end of the applicable performance period, pro-rated based on the period of employment during the applicable performance period, and (iii) the extension of the post-termination exercise window for vested stock options. The following table summarizes the Company’s stock award activity during the thirteen weeks ended April 29, 2023 (shares in thousands): Stock Options Restricted Stock Restricted Stock Units Performance Stock Shares Weighted- Shares Weighted- Shares Weighted- Shares Weighted- Outstanding, January 28, 2023 1,788 $ 20.35 750 $ 50.10 24 $ 58.61 854 $ 45.70 Granted (a) — — 321 76.07 — — 503 76.07 Forfeited/canceled — — (3) 47.63 (5) 58.61 — — Exercised/vested (79) 21.32 (378) 42.57 — — (640) 24.35 Outstanding, April 29, 2023 1,709 $ 20.31 690 $ 66.33 19 $ 58.61 717 $ 58.84 a. Includes 320 incremental Performance Stock awards granted in fiscal year 2020 with a weighted-average grant date fair value of $24.35, that vested in fiscal year 2023 at greater than 100% of target based on performance. Stock-based compensation expense was $10.0 million and $9.1 million for the thirteen weeks ended April 29, 2023 and April 30, 2022, respectively. On June 14, 2018, the Company’s board of directors adopted, and its stockholders approved, the ESPP, which became effective July 1, 2018. The aggregate number of shares of common stock that were to be reserved for issuance under the ESPP was to be equal to the sum of (i) 973,014 shares and (ii) an annual increase on the first day of each calendar year beginning in 2019 and ending in 2028 equal to the lesser of (A) 486,507 shares, (B) 0.5% of the shares outstanding (on an as converted basis) on the last day of the immediately preceding fiscal year and (C) such smaller number of shares as determined by the |
Treasury Shares and Share Repur
Treasury Shares and Share Repurchase Program | 3 Months Ended |
Apr. 29, 2023 | |
Equity [Abstract] | |
Treasury Shares and Share Repurchase Program | Treasury Shares and Share Repurchase Program Treasury Shares Acquired on Restricted Stock and Performance Stock Awards The Company acquired 356,202 shares to satisfy employees’ tax withholding obligations upon the vesting of restricted stock and performance stock awards in the thirteen weeks ended April 29, 2023, which were recorded as $27.1 million of t reasury stock. The Company acquired 229,900 shares to satisfy employees' tax withholding obligations upon the vesting of restricted stock awards in the thirteen weeks ended April 30, 2022, which were recorded as $15.5 million of treasury stock. Share Repurchase Program On November 16, 2021, the Company's board of directors approved a share repurchase program (the "2021 Repurchase Program") that allows the Company to repurchase up to $500.0 million of its outstanding common stock from time to time as market conditions warrant. The 2021 Repurchase Program expires in January 2025. The Company initiated the 2021 Repurchase Program to mitigate potentially dilutive effects of stock options and shares of restricted stock granted by the Company, in addition to enhancing shareholder value. The Company repurchased 204,040 shares for $15.3 million and 570,506 shares for $35.8 million during the thirteen weeks ended April 29, 2023 and April 30, 2022, respectively . As of April 29, 2023, $303.4 million remained available to purchase under the 2021 Repurchase Program. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 29, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company projects the estimated annual effective tax rate for fiscal year 2023 to be 28.3%, excluding the tax effect of discrete events, such as excess tax benefits from stock-based compensation, changes in tax legislation, settlements of tax audits and changes in uncertain tax positions, among others. The Company’s effective income tax rate from continuing operations was 32.6% and 21.1% for the thirteen weeks ended April 29, 2023 and April 30, 2022, respectively. The increase in the effective tax rate was largely due to an immaterial adjustment to certain deferred tax assets related to prior periods, as well as lower excess tax benefits, offset by higher income in the current period. The Company is subject to taxation in the U.S. federal and various state taxing jurisdictions. The Company’s tax years from 2018 forward remain open and subject to examination by the Internal Revenue Service and various state taxing authorities. On August 16, 2022, the Inflation Reduction Act was signed into law in the United States. We are currently evaluating the Inflation Reduction Act law to determine future impacts on our financial statements. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 29, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Certain assets and liabilities are carried at fair value in accordance with GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company uses a three-level hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable inputs other than quoted market prices included in Level 1 such as quoted market prices for markets that are not active or other inputs that are observable or can be corroborated by observable market data. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, including certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Financial Assets and Liabilities The fair value of the Company's long-term debt is estimated based on current market rates for our specific debt instrument. Judgment is required to develop these estimates. As such, the estimated fair value of long-term debt is classified within Level 2, as defined under U.S. GAAP. The gross carrying amount and fair value of the Company’s debt at April 29, 2023 are as follows (in thousands): Carrying Amount Fair Value First Lien Term Loan $ 450,000 $ 450,734 ABL Revolving Facility 400,000 400,000 Total Debt $ 850,000 $ 850,734 The gross carrying amount and fair value of the Company’s debt at January 28, 2023 are as follows (in thousands): Carrying Amount Fair Value First Lien Term Loan $ 450,000 $ 450,482 ABL Revolving Facility 405,000 405,000 Total Debt $ 855,000 $ 855,482 The gross carrying amount and fair value of the Company’s debt at April 30, 2022 are as follows (in thousands): Carrying Amount Fair Value First Lien Term Loan $ 701,920 $ 701,323 ABL Facility 130,000 130,000 Total Debt $ 831,920 $ 831,323 Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis The Company measures certain non-financial assets and liabilities, including long-lived assets, at fair value on a non-recurring basis. The Company believes that the carrying amounts of its other financial instruments, including cash, accounts receivable, and accounts payable, approximates their carrying value due to the short-term maturities of these instruments. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Apr. 29, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The table below reconciles basic weighted-average shares of common stock outstanding to diluted weighted-average shares of common stock outstanding for the thirteen weeks ended April 29, 2023 and April 30, 2022 (in thousands): Thirteen Weeks Ended April 29, 2023 April 30, 2022 Weighted-average shares of common stock outstanding, used for basic computation 133,312 134,244 Plus: Incremental shares of potentially dilutive securities: Stock incentive awards 2,590 2,458 Weighted-average shares of common stock and dilutive potential shares of common stock outstanding 135,902 136,702 The table below summarizes anti-dilutive awards that were excluded from the computation of diluted earnings for the thirteen weeks ended April 29, 2023 and April 30, 2022, as their inclusion would have been anti-dilutive (in thousands): Thirteen Weeks Ended April 29, 2023 April 30, 2022 Restricted shares 103 96 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Apr. 29, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Interest Rate Swaps On November 13, 2018, the Company entered into three forward starting interest rate swaps (the "Interest Rate Swaps"), which were effective starting on February 13, 2019 and fixed the LIBOR component of $1.2 billion of its floating rate debt at a rate of approximately 3.0% from February 13, 2019 until February 13, 2022. The Company elected hedge accounting for the interest rate swap agreements, and as such, the effective portion of the gains or losses were recorded as a component of other comprehensive income and the ineffective portion of gains or losses were recorded as interest expense. The Interest Rate Swaps expired in February 2022. There was no liability recorded as of April 29, 2023, January 28, 2023, or April 30, 2022. The net of tax amount for the effective and ineffective Interest Rate Swaps was recorded in other comprehensive income and interest expense, respectively. There were no gains or losses recorded in other comprehensive income for the thirteen weeks ended April 29, 2023. For the thirteen weeks ended April 30, 2022, the Company recorded a $0.8 million gain in other comprehensive income. There was no ineffective portion of gains in the thirteen weeks ended April 29, 2023. The ineffective portion of gains of $0.3 million for the thirteen weeks ended April 30, 2022 was recorded in interest expense. |
Acquisitions
Acquisitions | 3 Months Ended |
Apr. 29, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions On May 2, 2022, the Company completed the Acquisition to bring substantially all of its end-to-end perishable supply chain in-house. The total consideration paid by the Company in connection with the Acquisition was approximately $375.6 million, excluding transaction costs. The Company did not record any transaction costs during the thirteen weeks ended April 29, 2023. The Company recorded transaction costs related to the acquisition of $7.9 million during the thirteen weeks ended April 30, 2022. These costs are included in selling, general and administrative expenses in the condensed consolidated statements of operations and comprehensive income. The following table summarizes the consideration paid and the final fair values of the assets acquired and liabilities assumed (in thousands) in connection with the Acquisition: As of May 2, 2022 Fair Value Assets: Property and equipment, net $ 203,400 Merchandise inventories 88,072 Goodwill 84,682 Operating lease right-of-use assets, net 16,569 Prepaid expenses and other current assets 433 Intangibles, net 100 Total Assets 393,256 Liabilities: Long-term operating lease liabilities (16,569) Accrued expenses and other current liabilities (1,106) Total Liabilities (17,675) Total consideration paid, including working capital adjustments $ 375,581 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 29, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying interim financial statements of BJ’s Wholesale Club Holdings, Inc. are unaudited and, in the opinion of management, reflect all normal recurring adjustments considered necessary for a fair statement of the Company’s financial statements in accordance with GAAP. The condensed consolidated balance sheet as of January 28, 2023 is derived from the audited consolidated balance sheet as of that date. The unaudited results of operations for the first quarter of fiscal year 2023 are not necessarily indicative of future results or results to be expected for fiscal year 2023. The Company’s business, in common with the business of retailers generally, is subject to seasonal influences. The Company’s sales and operating income have typically been highest in the fourth quarter holiday season and lowest in the first quarter of each fiscal year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the fiscal year 2022, as filed with the Securities and Exchange Commission on March 16, 2023. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company’s accounting policies are set forth in the audited financial statements included in the Company’s Annual Report on Form 10-K for fiscal year 2022. There have been no material changes to these accounting policies and no accounting pronouncements adopted that had a material impact on the Company’s financial statements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Apr. 29, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Point of sale transactions as a percentage of net sales and total revenues | The following table summarizes the Company’s point of sale transactions at clubs and gas stations, excluding sales tax, as a percentage of both net sales and total revenues: Thirteen Weeks Ended April 29, 2023 April 30, 2022 Point of sale transactions, excluding sales tax, as a percent of net sales 91% 92% Point of sale transactions, excluding sales tax, as a percent of total revenues 89% 90% |
Disaggregation of revenue | The following table summarizes the Company’s percentage of net sales disaggregated by category: Thirteen Weeks Ended April 29, 2023 April 30, 2022 Grocery 71 % 67 % General Merchandise and Services 10 % 11 % Gasoline and Other 19 % 22 % |
Debt and Credit Arrangements (T
Debt and Credit Arrangements (Tables) | 3 Months Ended |
Apr. 29, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The following table summarizes the Company’s debt (in thousands): April 29, 2023 January 28, 2023 April 30, 2022 ABL Revolving Facility $ 400,000 $ 405,000 $ — ABL Facility — — 130,000 First Lien Term Loan 450,000 450,000 701,920 Unamortized original issue discount and debt issuance costs (1,996) (2,120) (2,933) Less: Short-term debt (400,000) (405,000) (80,000) Long-term debt $ 448,004 $ 447,880 $ 748,987 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 3 Months Ended |
Apr. 29, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock award activity | The following table summarizes the Company’s stock award activity during the thirteen weeks ended April 29, 2023 (shares in thousands): Stock Options Restricted Stock Restricted Stock Units Performance Stock Shares Weighted- Shares Weighted- Shares Weighted- Shares Weighted- Outstanding, January 28, 2023 1,788 $ 20.35 750 $ 50.10 24 $ 58.61 854 $ 45.70 Granted (a) — — 321 76.07 — — 503 76.07 Forfeited/canceled — — (3) 47.63 (5) 58.61 — — Exercised/vested (79) 21.32 (378) 42.57 — — (640) 24.35 Outstanding, April 29, 2023 1,709 $ 20.31 690 $ 66.33 19 $ 58.61 717 $ 58.84 a. Includes 320 incremental Performance Stock awards granted in fiscal year 2020 with a weighted-average grant date fair value of $24.35, that vested in fiscal year 2023 at greater than 100% of target based on performance. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 29, 2023 | |
Fair Value Disclosures [Abstract] | |
Gross carrying amount and fair value of debt | The gross carrying amount and fair value of the Company’s debt at April 29, 2023 are as follows (in thousands): Carrying Amount Fair Value First Lien Term Loan $ 450,000 $ 450,734 ABL Revolving Facility 400,000 400,000 Total Debt $ 850,000 $ 850,734 The gross carrying amount and fair value of the Company’s debt at January 28, 2023 are as follows (in thousands): Carrying Amount Fair Value First Lien Term Loan $ 450,000 $ 450,482 ABL Revolving Facility 405,000 405,000 Total Debt $ 855,000 $ 855,482 The gross carrying amount and fair value of the Company’s debt at April 30, 2022 are as follows (in thousands): Carrying Amount Fair Value First Lien Term Loan $ 701,920 $ 701,323 ABL Facility 130,000 130,000 Total Debt $ 831,920 $ 831,323 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Apr. 29, 2023 | |
Earnings Per Share [Abstract] | |
Basic and diluted weighted-average shares of common stock outstanding | The table below reconciles basic weighted-average shares of common stock outstanding to diluted weighted-average shares of common stock outstanding for the thirteen weeks ended April 29, 2023 and April 30, 2022 (in thousands): Thirteen Weeks Ended April 29, 2023 April 30, 2022 Weighted-average shares of common stock outstanding, used for basic computation 133,312 134,244 Plus: Incremental shares of potentially dilutive securities: Stock incentive awards 2,590 2,458 Weighted-average shares of common stock and dilutive potential shares of common stock outstanding 135,902 136,702 |
Anti-dilutive restricted shares and stock options | The table below summarizes anti-dilutive awards that were excluded from the computation of diluted earnings for the thirteen weeks ended April 29, 2023 and April 30, 2022, as their inclusion would have been anti-dilutive (in thousands): Thirteen Weeks Ended April 29, 2023 April 30, 2022 Restricted shares 103 96 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Apr. 29, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Estimated fair values of assets acquired and liabilities assumed | The following table summarizes the consideration paid and the final fair values of the assets acquired and liabilities assumed (in thousands) in connection with the Acquisition: As of May 2, 2022 Fair Value Assets: Property and equipment, net $ 203,400 Merchandise inventories 88,072 Goodwill 84,682 Operating lease right-of-use assets, net 16,569 Prepaid expenses and other current assets 433 Intangibles, net 100 Total Assets 393,256 Liabilities: Long-term operating lease liabilities (16,569) Accrued expenses and other current liabilities (1,106) Total Liabilities (17,675) Total consideration paid, including working capital adjustments $ 375,581 |
Description of Business (Detail
Description of Business (Details) | Apr. 29, 2023 state store gas_station |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of stores | store | 237 |
Number of gas stations | gas_station | 167 |
Number of states in which entity operates | state | 18 |
Revenue Recognition - Point of
Revenue Recognition - Point of Sale Transactions as a Percentage of Net Sales and Total Revenue (Details) - Revenue from Rights Concentration Risk - Point Of Sale Transaction | 3 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
Net sales | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 91% | 92% |
Total revenue | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 89% | 90% |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) | 3 Months Ended | 12 Months Ended | |
Apr. 29, 2023 USD ($) $ / gal | Apr. 30, 2022 USD ($) | Jan. 28, 2023 USD ($) $ / gal | |
Revenue, Major Customer [Line Items] | |||
Percentage of cash back earned | 5% | 2% | |
Maximum annual cash back amount | $ 500 | ||
Percentage of cash back earned, eligible purchases | 5% | ||
Cash back in the form of electronic awards issued | $ 10 | ||
Cash back, expiration period | 6 months | ||
Discount on gasoline (in USD per gallon) | $ / gal | 0.15 | 0.05 | |
Membership | |||
Revenue, Major Customer [Line Items] | |||
Deferred revenue | $ 192,700,000 | $ 185,200,000 | $ 183,700,000 |
Membership fee term | 12 months | ||
Gift Card Programs | |||
Revenue, Major Customer [Line Items] | |||
Deferred revenue | $ 13,100,000 | 11,200,000 | 14,100,000 |
Revenue recognized | 11,600,000 | 10,500,000 | |
Rewards Program | |||
Revenue, Major Customer [Line Items] | |||
Deferred revenue | 36,600,000 | 32,500,000 | 34,700,000 |
Revenue recognized | 34,700,000 | 30,300,000 | |
Rewards Program, Royalty | |||
Revenue, Major Customer [Line Items] | |||
Remaining performance obligation | 4,100,000 | $ 29,200,000 | $ 17,900,000 |
Rewards Program, Royalty | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-30 | |||
Revenue, Major Customer [Line Items] | |||
Remaining performance obligation | $ 4,100,000 | ||
Remaining performance obligation, timing of satisfaction | 9 months | ||
Rewards Program, Marketing and Integration | |||
Revenue, Major Customer [Line Items] | |||
Remaining performance obligation | $ 14,700,000 | ||
Rewards Program, Marketing and Integration | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-30 | |||
Revenue, Major Customer [Line Items] | |||
Remaining performance obligation | $ 6,300,000 | ||
Remaining performance obligation, timing of satisfaction | 9 months | ||
Rewards Program, Marketing and Integration | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-28 | |||
Revenue, Major Customer [Line Items] | |||
Remaining performance obligation | $ 8,400,000 | ||
Remaining performance obligation, timing of satisfaction | |||
Rewards Program, Marketing and Integration | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-28 | Accrued expenses and other current liabilities | |||
Revenue, Major Customer [Line Items] | |||
Remaining performance obligation | $ 1,100,000 | ||
Rewards Program, Marketing and Integration | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-28 | Other non-current liabilities | |||
Revenue, Major Customer [Line Items] | |||
Remaining performance obligation | $ 7,300,000 |
Revenue Recognition - Percentag
Revenue Recognition - Percentage of Net Sales Disaggregated by Category (Details) | 3 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
Grocery | ||
Disaggregation of Revenue [Line Items] | ||
Net sales percentage | 71% | 67% |
General Merchandise and Services | ||
Disaggregation of Revenue [Line Items] | ||
Net sales percentage | 10% | 11% |
Gasoline and Other | ||
Disaggregation of Revenue [Line Items] | ||
Net sales percentage | 19% | 22% |
Debt and Credit Arrangements -
Debt and Credit Arrangements - Debt Components (Details) - USD ($) $ in Thousands | Apr. 29, 2023 | Jan. 28, 2023 | Apr. 30, 2022 |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Carrying Amount | $ 850,000 | $ 855,000 | $ 831,920 |
Unamortized original issue discount and debt issuance costs | (1,996) | (2,120) | (2,933) |
Less: Short-term debt | (400,000) | (405,000) | (80,000) |
Long-term debt | 448,004 | 447,880 | 748,987 |
ABL Revolving Facility | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Carrying Amount | 400,000 | 405,000 | 0 |
ABL Facility | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Carrying Amount | 0 | 0 | 130,000 |
First Lien Term Loan | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Carrying Amount | $ 450,000 | $ 450,000 | $ 701,920 |
Debt and Credit Arrangements _2
Debt and Credit Arrangements - Narrative (Details) | Jan. 05, 2023 | Jan. 04, 2023 | Jul. 28, 2022 USD ($) | Jul. 27, 2022 USD ($) | Apr. 29, 2023 USD ($) | Jan. 28, 2023 USD ($) | Apr. 30, 2022 USD ($) |
Debt Instrument [Line Items] | |||||||
Carrying Amount | $ 850,000,000 | $ 855,000,000 | $ 831,920,000 | ||||
ABL Revolving Facility | |||||||
Debt Instrument [Line Items] | |||||||
Carrying Amount | 400,000,000 | 405,000,000 | 0 | ||||
ABL Facility | |||||||
Debt Instrument [Line Items] | |||||||
Carrying Amount | 0 | 0 | $ 130,000,000 | ||||
Decrease in basis spread on variable rate upon achievement of certain net leverage ratio | 0.125% | ||||||
ABL Facility | Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | $ 50,000,000 | ||||||
Net leverage ratio | 3 | ||||||
Stated interest rate | 2.45% | ||||||
ABL Facility | Term Loan | Minimum | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1% | ||||||
ABL Facility | Term Loan | Minimum | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2% | ||||||
ABL Facility | Term Loan | Maximum | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.50% | ||||||
ABL Facility | Term Loan | Maximum | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.50% | ||||||
First Lien Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Carrying Amount | $ 450,000,000 | $ 450,000,000 | $ 701,920,000 | ||||
Effective interest rate | 7.58% | 7.11% | 2.52% | ||||
Revolving Credit Facility | ABL Revolving Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 1,200,000,000 | ||||||
Commitment fee percentage | 0.20% | ||||||
Carrying Amount | $ 400,000,000 | $ 405,000,000 | |||||
Interest rate at end of period | 6.08% | 5.63% | |||||
Unused capacity | $ 645,000,000 | $ 535,200,000 | |||||
Revolving Credit Facility | ABL Revolving Facility | Term one | |||||||
Debt Instrument [Line Items] | |||||||
Term of borrowing | 1 month | ||||||
Revolving Credit Facility | ABL Revolving Facility | Term two | |||||||
Debt Instrument [Line Items] | |||||||
Term of borrowing | 3 months | ||||||
Revolving Credit Facility | ABL Revolving Facility | Term three | |||||||
Debt Instrument [Line Items] | |||||||
Term of borrowing | 6 months | ||||||
Revolving Credit Facility | ABL Revolving Facility | Term four | |||||||
Debt Instrument [Line Items] | |||||||
Term of borrowing | 12 months | ||||||
Revolving Credit Facility | ABL Revolving Facility | Minimum | Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1% | ||||||
Revolving Credit Facility | ABL Revolving Facility | Minimum | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0% | ||||||
Revolving Credit Facility | ABL Revolving Facility | Maximum | Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.25% | ||||||
Revolving Credit Facility | ABL Revolving Facility | Maximum | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.25% | ||||||
Revolving Credit Facility | ABL Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 950,000,000 | ||||||
Carrying Amount | $ 130,000,000 | ||||||
Interest rate at end of period | 1.89% | ||||||
Unused capacity | $ 859,100,000 | ||||||
Revolving Credit Facility | ABL Facility | Minimum | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.25% | ||||||
Revolving Credit Facility | ABL Facility | Minimum | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.25% | ||||||
Revolving Credit Facility | ABL Facility | Maximum | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.75% | ||||||
Revolving Credit Facility | ABL Facility | Maximum | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.75% | ||||||
Letter of Credit | ABL Revolving Facility | |||||||
Debt Instrument [Line Items] | |||||||
Carrying Amount | $ 11,800,000 | $ 11,500,000 | |||||
Letter of Credit | ABL Facility | |||||||
Debt Instrument [Line Items] | |||||||
Carrying Amount | $ 10,900,000 | ||||||
Term Loan | First Lien Term Loan | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Net leverage ratio | 0.0350 | ||||||
Term Loan | First Lien Term Loan | Line of Credit | Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.75% | ||||||
Term Loan | First Lien Term Loan | Line of Credit | Minimum | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2% | ||||||
Term Loan | First Lien Term Loan | Line of Credit | Maximum | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.25% |
Stock Incentive Plans - Narrati
Stock Incentive Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Apr. 29, 2023 | Apr. 30, 2022 | Jun. 14, 2018 | Jun. 13, 2018 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 10 | $ 9.1 | ||
The 2018 Plan | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Shares authorized for issuance (in shares) | 13,148,058 | |||
The 2011 Plan and 2012 Director Plan | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Shares reserved for issuance (in shares) | 985,369 | |||
Shares available for future issuance (in shares) | 4,859,186 | |||
Employee Stock Purchase Plan | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Shares reserved for issuance (in shares) | 2,524,665 | |||
Stock-based compensation expense | $ 0.3 | $ 0.2 | ||
Shares reserved for issuance (in shares) | 973,014 | |||
Shares reserved for issuance, annual increase (in shares) | 486,507 | |||
Shares reserved for issuance, annual increase percentage | 0.50% |
Stock Incentive Plans - Stock A
Stock Incentive Plans - Stock Award Activity (Details) shares in Thousands | 3 Months Ended |
Apr. 29, 2023 $ / shares shares | |
Stock Options | |
Shares | |
Outstanding (in shares) | shares | 1,788 |
Granted (in shares) | shares | 0 |
Forfeited/canceled (in shares) | shares | 0 |
Exercised/vested (in shares) | shares | (79) |
Outstanding (in shares) | shares | 1,709 |
Weighted- Average Exercise Price | |
Outstanding (in USD per share) | $ / shares | $ 20.35 |
Granted (in USD per share) | $ / shares | 0 |
Forfeited/canceled (in USD per share) | $ / shares | 0 |
Exercised/vested (in USD per share) | $ / shares | 21.32 |
Outstanding (in USD per share) | $ / shares | $ 20.31 |
Restricted Stock | |
Shares | |
Outstanding (in shares) | shares | 750 |
Granted (in shares) | shares | 321 |
Forfeited/canceled (in shares) | shares | (3) |
Exercised/vested (in shares) | shares | (378) |
Outstanding (in shares) | shares | 690 |
Weighted- Average Grant Date Fair Value | |
Outstanding (in USD per share) | $ / shares | $ 50.10 |
Granted (in USD per share) | $ / shares | 76.07 |
Forfeited/canceled (in USD per share) | $ / shares | 47.63 |
Exercised/vested (in USD per share) | $ / shares | 42.57 |
Outstanding (in USD per share) | $ / shares | $ 66.33 |
Restricted Stock Units | |
Shares | |
Outstanding (in shares) | shares | 24 |
Granted (in shares) | shares | 0 |
Forfeited/canceled (in shares) | shares | (5) |
Exercised/vested (in shares) | shares | 0 |
Outstanding (in shares) | shares | 19 |
Weighted- Average Grant Date Fair Value | |
Outstanding (in USD per share) | $ / shares | $ 58.61 |
Granted (in USD per share) | $ / shares | 0 |
Forfeited/canceled (in USD per share) | $ / shares | 58.61 |
Exercised/vested (in USD per share) | $ / shares | 0 |
Outstanding (in USD per share) | $ / shares | $ 58.61 |
Performance Stock | |
Shares | |
Outstanding (in shares) | shares | 854 |
Granted (in shares) | shares | 503 |
Forfeited/canceled (in shares) | shares | 0 |
Exercised/vested (in shares) | shares | (640) |
Outstanding (in shares) | shares | 717 |
Weighted- Average Grant Date Fair Value | |
Outstanding (in USD per share) | $ / shares | $ 45.70 |
Granted (in USD per share) | $ / shares | 76.07 |
Forfeited/canceled (in USD per share) | $ / shares | 0 |
Exercised/vested (in USD per share) | $ / shares | 24.35 |
Outstanding (in USD per share) | $ / shares | $ 58.84 |
Performance Stock, Vested at Greater than 100% of Target | |
Shares | |
Granted (in shares) | shares | 320 |
Weighted- Average Grant Date Fair Value | |
Granted (in USD per share) | $ / shares | $ 24.35 |
Performance target (greater than) | 100% |
Treasury Shares and Share Rep_2
Treasury Shares and Share Repurchase Program (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | Nov. 16, 2021 | |
Equity [Abstract] | |||
Shares reacquired to satisfy tax withholding obligations (in shares) | 356,202 | 229,900 | |
Shares reacquired to satisfy tax withholding obligations | $ 27,100 | $ 15,500 | |
Equity, Class of Treasury Stock [Line Items] | |||
Shares repurchased | $ 42,369 | $ 51,342 | |
2021 Repurchase Program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Share repurchase program, amount authorized | $ 500,000 | ||
Shares repurchased (in shares) | 204,040 | 570,506 | |
Shares repurchased | $ 15,300 | $ 35,800 | |
Share repurchase program, amount remaining available | $ 303,400 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 12 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | Feb. 03, 2024 | |
Income Tax Contingency [Line Items] | |||
Effective tax rate | 32.60% | 21.10% | |
Forecast | |||
Income Tax Contingency [Line Items] | |||
Effective tax rate | 28.30% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Apr. 29, 2023 | Jan. 28, 2023 | Apr. 30, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Amount | $ 850,000 | $ 855,000 | $ 831,920 |
Fair Value | 850,734 | 855,482 | 831,323 |
First Lien Term Loan | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Amount | 450,000 | 450,000 | 701,920 |
Fair Value | 450,734 | 450,482 | 701,323 |
ABL Revolving Facility | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Amount | 400,000 | 405,000 | 0 |
Fair Value | 400,000 | 405,000 | |
ABL Facility | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Amount | $ 0 | $ 0 | 130,000 |
Fair Value | $ 130,000 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Weighted-Average Shares of Common Stock Outstanding (Details) - shares shares in Thousands | 3 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
Earnings Per Share [Abstract] | ||
Weighted-average shares of common stock outstanding, used for basic computation (in shares) | 133,312 | 134,244 |
Plus: Incremental shares of potentially dilutive securities: | ||
Stock incentive awards (in shares) | 2,590 | 2,458 |
Weighted-average shares of common stock and dilutive potential shares of common stock outstanding (in shares) | 135,902 | 136,702 |
Earnings Per Share - Anti-Dilut
Earnings Per Share - Anti-Dilutive Restricted Shares and Stock Options (Details) - shares shares in Thousands | 3 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
Restricted shares | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Antidilutive securities excluded from computation of diluted earnings per share (in shares) | 103 | 96 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Details) $ in Millions | 3 Months Ended | ||||
Nov. 13, 2018 derivative_instrument | Apr. 29, 2023 USD ($) | Apr. 30, 2022 USD ($) | Jan. 28, 2023 USD ($) | Feb. 13, 2019 USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||
Number of derivative instruments entered | derivative_instrument | 3 | ||||
Amount of hedged item | $ 1,200 | ||||
Interest rate | 3% | ||||
Interest rate swap liability | $ 0 | $ 0 | $ 0 | ||
Derivative gains | 0 | 0.8 | |||
Interest expense | $ 0 | $ 0.3 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - Burris Logistics - USD ($) $ in Millions | 3 Months Ended | ||
May 02, 2022 | Apr. 29, 2023 | Apr. 30, 2022 | |
Business Acquisition [Line Items] | |||
Consideration paid | $ 375.6 | ||
Transaction costs | $ 0 | $ 7.9 |
Acquisitions - Assets Acquired
Acquisitions - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Apr. 29, 2023 | Jan. 28, 2023 | May 02, 2022 | Apr. 30, 2022 |
Assets: | ||||
Goodwill | $ 1,008,816 | $ 1,008,816 | $ 924,134 | |
Burris Logistics | ||||
Assets: | ||||
Property and equipment, net | $ 203,400 | |||
Merchandise inventories | 88,072 | |||
Goodwill | 84,682 | |||
Operating lease right-of-use assets, net | 16,569 | |||
Prepaid expenses and other current assets | 433 | |||
Intangibles, net | 100 | |||
Total Assets | 393,256 | |||
Liabilities: | ||||
Long-term operating lease liabilities | (16,569) | |||
Accrued expenses and other current liabilities | (1,106) | |||
Total Liabilities | (17,675) | |||
Total consideration paid, including working capital adjustments | $ 375,581 |